Posted: 9/19/2009 10:02:23 AM EDT
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I am self-employed and my wife is regular employed. I make 3 times what she does. Every year, I end up owing and extra 2k-3k. Finally figured out becuase she's not being withheld at the rate our combined income is. 28% vs. 15% (I think). She's got it corrected now.
But I got to thinking, if she would file seperately and I file head of household, would we end up paying less overall taxes for the year? |
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As others have said, cant file separate and head of household when married. You could get divorced if you have kids and it works out to be tax-advantaged for you to now pay a lot of "spousal support" that will be income for your wife, and deductible for you - but I doubt the savings would be there and other issues would come into play with "rights of survivorship" later. If you are not paying penalties, then don't worry. Otherwise, just have a little extra taken out of the wife's paycheck every month. $250 should be fine. |
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Quoted: Quoted: Cant file sepately in Texas if married What does TX have to do with it? You can file separately in TX, just difficult to do as it's a community property state and not worth the hassle of trying to deal with the income/expense separation. For the vast majority of folks, married filing separate isn't worth it. And you can't file separate and head of household, both spouses have to file separate. |
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Quoted:
Truth be told, you're better off owing some becasue that way, the fucking Feds don't get an all year long interest free loan from you. This....its your money....hang on to it for as long as you possibly can. Pay your bill when the time comes but until then, keep that money in your pocket where it belongs. 
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